Interpretation of Zircuit: Invested by Binance Labs, a must-do project for re-staking to earn points
In the year of airdrops, active interaction and participation are the baseline.Author: Deep Tide TechFlow
Three months ago, we introduced Zircuit's product model and points activities.
Today, Binance officially announced its investment in Zircuit. Although the specific financing amount has not been disclosed, it has further raised everyone's expectations for future airdrops related to this project.
Currently, the activity of re-staking to earn points through Zircuit is still ongoing, and developers can also earn points by developing applications for it.
If you are still unfamiliar with Zircuit and the related points activities, this old article is worth a re-read, providing a step-by-step guide for interaction.
This year's re-staking track is becoming increasingly competitive.
Not only are there numerous re-staking protocols associated with EigenLayer, but even infrastructure projects that are not directly related are not missing out on this hot topic of traffic and revenue, attempting to leverage the yield-generating characteristics of re-staked assets to inject more liquidity into their chains.
On February 23, zk-Rollup — Zircuit, backed by Pantera and Dragonfly, announced a new activity on social media: Zircuit Staking, allowing users to deposit native ETH or liquid-staked, re-staked tokens into Zircuit to earn points for the project and native rewards from re-staking.
This also means that the liquid staking nested model has found a new outlet for maximizing benefits.
If you have previously participated in EigenLayer-related re-staking projects, you can make full use of your LRT assets by depositing them into Zircuit, maximizing your returns while vying for Zircuit's airdrop.
Considering Zircuit's backing by top VCs and its collaborations with numerous LRT projects, participating in this staking activity may become the next hot topic in the LRT track.
To help everyone understand Zircuit, this article will provide a brief introduction to its business and explain how to participate in staking and earn points.
What is Zircuit?
Zircuit is a fully EVM-compatible zk Rollup currently in the testnet phase.
The concept of zk Rollup will not be elaborated here; it can be simply understood as an Ethereum L2 using zk technology, essentially aimed at solving Ethereum's performance and efficiency issues, helping transactions execute better and faster.
Its architecture can be divided into three parts:
Sequencer that processes transactions to build L2 blocks
Prover that generates validity proofs for these blocks
Smart Contracts that interact with the L1 system
Compared to the OP architecture, Zircuit can achieve rapid consistency of zkEVM Rollup without the challenge period for withdrawal transactions.
Zircuit utilizes parallel proof generation to quickly produce proofs, while also employing proof aggregation to generate a single proof that can be verified on-chain. By decomposing circuits into specialized parts and aggregating evidence, Zircuit achieves higher efficiency and lower operational costs. The final validity proof is an aggregation of proofs for a batch of L2 blocks.
Additionally, it is worth mentioning that Zircuit has a key feature that uses its Sequencer Level Security (SLS) to prevent malicious transactions/hacks. Since this part involves many technical points, it will not be elaborated here; interested readers can visit the project's documentation for more details.
Another point that everyone is more concerned about is:
Zircuit uses native ETH and currently does not have a governance token (this does not mean there won't be one in the future).
Therefore, how to take advantage of interactions to vie for future airdrops has become a more practical topic at this stage.
Re-staking to Earn Points: A New Outlet for Maximizing Benefits
As we all know, the biggest pain point in taking advantage of opportunities is the opportunity cost — limited funds make it difficult to take advantage of A and then also take advantage of B.
In a situation where airdrops are increasingly competitive and various protocols are vying for user attention and liquidity, if a single fund can maximize benefits, it is naturally the most popular choice.
Zircuit has taken this to the extreme, officially announcing its points-earning activity today, and the way to earn points does not require additional capital investment:
Deposit re-staked tokens that users are already using into Zircuit to achieve the effect of maximizing benefits.
First, let's take a look at the rules for earning Zircuit points.
The official statement is that users can participate in the Zircuit ecosystem through various tasks to earn Zircuit points for future rewards. The aim is to reward participating users and the community, helping guide Zircuit to obtain more native liquidity. Users can earn Zircuit points through staking, but those who choose to migrate their assets to the mainnet when Zircuit goes live can receive the most rewards.
In other words, earning points through staking is just the current activity, and there may be cross-chain asset rewards in the future.
So, focusing on the current points-earning activity, the first question to consider is "which assets can be deposited to earn points?"
Zircuit categorizes the deposited assets into two types:
Native ETH, which will be returned in wETH form upon withdrawal.
Various LST/LRT tokens, supporting various re-staked ETH from Swell, Renzo, KelpDAO, EtherFi, Liquid Collective, and Lido.
However, it is important to note that Zircuit encourages you to deposit LST/LRT, as the efficiency of earning Zircuit points varies depending on the asset deposited:
Depositing ETH has a multiplier of 0.5x
Depositing LRT/LST has a multiplier of 1x
This means that the point-earning efficiency for depositing native ETH is only half that of depositing LST/LRT.
Secondly, I believe that Zircuit's points activity is more friendly to small investors.
There is no minimum deposit requirement to earn Zircuit points, and regardless of the deposit amount, the aforementioned multipliers for assets will not change; at the same time, there is no un-staking period, allowing for more flexibility when withdrawing assets.
Staking Operation Guide
The following will provide a detailed demonstration of how to participate in staking.
- First, enter Zircuit's official staking page here, where you can enter the invitation code S5WN47 to register and link your wallet. If you fill in the invitation code, you can earn an additional 15% OG referral points during staking.
- In the subsequent interface, deposit any tokens supported by LST/LRT protocols.
Enter the amount you wish to stake, then click Confirm below, and after signing with your wallet, the staking will be successful.
The detailed rewards from staking can be broken down into:
Total Staking Rewards = Staking APR + Re-staking APR + Eigenlayer Points + LRT Points (e.g., ezETH, rswETH, rsETH) + Zircuit's own points (future rewards)
This easily achieves the effect of maximizing benefits.
However, high profits and low thresholds also mean that it is easy to become crowded.
As of the time of writing, there is not much content in the Chinese community introducing Zircuit; as time goes on, more people will inevitably participate in the process of staking to earn points.
Competition means that your expected returns may decrease, but at the same time, more participants also mean greater certainty of returns.
In this year of airdrops, actively interacting and participating is the baseline; as for the upper limit, it will depend on more diversified strategies and time.
